The Government's decision to talk to Sikorsky ends one of the hardest-fought tender battles of recent years, writes Arthur Beesley.
At stake was the largest defence contract yet offered by the State - the three search-and-rescue aircraft will cost about €60 million. But when the supply of parts and maintenance fees are taken into account over the 30-year lifespan of the helicopters, the State's overall expenditure could amount to twice or three times the purchase price.
Therefore the deal Sikorsky is expected to hammer out with the Department of Defence in the coming weeks is highly lucrative. In addition, the State wants an option on another two helicopters for general military purposes. The US group was chosen over three other helicopter-makers short-listed by the Department, EH Industries and CHC Scotia of Britain, and French firm Eurocopter.
To support their submissions, certain companies on the short-list hired Dublin-based advisers and agents. According to a Department of Defence spokesman, certain figures acting for the bidders were probably chosen because they had "contacts" within the Defence Forces or the Department.
Sikorsky retained a Dublin-based defence contractor, Arcon Consultants. It also hired public relations firm Fleishman Hillard Saunders. An FHS director and former general secretary of the Progressive Democrats, Mr Michael Parker, handled media relations.
Controlled by businessman Mr Andy Woods and his son Mr Andrew Woods, Arcon was agent to the Austrian arms-maker Steyr when it won a contract in 1987 to supply 13,100 rifles to the Army. The deal was worth €7.62 million.
It was also agent to the US group ITT, which supplied radio equipment worth £10.5 million to the Defence Forces in 1995-1998.
The most publicised element of Sikorsky's bid was a sideline deal to place a $130 million contract with FLS Aerospace, the former TEAM Aer Lingus, to convert Boeing 767 passenger aircraft for cargo purposes. That package was supported by AIB and another US group, GE, which is also expected to place business with FLS.
While the Department said "offset" arrangements, the move to place business with FLS was something of a coup for the aircraft maintenance firm. Its plant at Dublin Airport is only marginally profitable and it is seeking 200 redundancies from its 1,600 staff due to the crisis in the global aviation business.
EH Industries is an offshoot of Augusta Westland. It engaged Irish-based aviation expert Mr J.P. Kelly, described as an "independent consultant". It also engaged PR firm Murray Consultants, in which a senior partner, Mr Jim Milton, handled media relations.
Eurocopter's Irish agent is Mr Nicholas Fitzpatrick, whose company Atron has supported many successful attempts by international firms to secure large contracts offered by the Department of Defence. Atron was agent to Casa when it secured a £36 million deal in 1991 to supply two fishery patrol aircraft to the Air Corps. The Moriarty tribunal has heard that Mr Fitzpatrick donated £10,000 to a fund to pay medical expenses in 1989-1991 for the late Brian Lenihan.
CHC Scotia operates two helicopters which run the marine search and rescue service at Shannon and Dublin.
